[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR537.407]

[Page 679]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 537--BURMESE SANCTIONS REGULATIONS--Table of Contents
 
                       Subpart D--Interpretations
 
Sec. 537.407  Activities under pre-May 21, 1997 agreements.

    (a) Activities undertaken by a U.S. person pursuant to an agreement 
entered into prior to May 21, 1997, between the U.S. person and the 
Government of Burma or a nongovernmental entity in Burma are not 
prohibited new investments, as defined in Sec. 537.308.
    (b) A U.S. person who is a party to a pre-effective date agreement 
for the development of economic resources located in Burma may enter 
into subsequent agreements with foreign persons where such agreements 
are pursuant to, or in exercise of rights under, the pre-effective date 
agreement. The facilitation of foreign persons' investment in Burma 
under these circumstances is authorized pursuant to the general license 
contained in Sec. 537.504.
    (c) A U.S. person may not enter into a contract for the economic 
development of resources located in Burma after May 21, 1997, if 
pursuant to, or in exercise of rights under, a pre-effective date 
agreement, unless the contractual arrangement is specifically 
contemplated in the pre-effective date agreement.
    (d) The exercise of rights under pre-effective date agreements may 
include the exercise of options to extend the contract, depending on 
such factors as the degree of specificity with which the option to 
extend is described in the pre-effective date agreement, and the degree 
to which the party wishing to renew can enforce its decision to exercise 
the option.